Cash flow on first rental property

[Eric Struben]

Hey all,

I read a more general post to this question and maybe there are even more out there but I am wondering as a first time investor in a rental property, how much (maybe percent?) should I try to cash flow. The other post pretty much stated, do not get a place if it does not cash flow.

Here's a hypethetical scenario..

I can get a cash out refi on my primary residence for around $120k in my pocket (330 total, pay off house at 210 left on mortgage) that would change my mortgage from $1000/month to $1900/month. I am going in on a place with my mother and we will be paying cash, then I will use the refi to pay her back. We have seen a triplex for $500,000, that rents out at $4,000/month gross, so lets say $3,000/mo net. With my $120k I would be getting around 25% of the rent, which would be $750/mo in my pocket. That leaves me with a negative cash flow of $150... Even if the property rented out at 1% ($4,000/mo net) I would be at a positive $100/mo.

Is this just a bad time to try to cash out refi? Or is this something that I have to get over with my first deal? Or am I just an idiot and thinking of this incorrectly...

Anything helps!